maithan alloys ltd--multibagger

Maithan Alloys is one of the largest and most profitable manufacturer of manganese alloys in one of the most competitive production locations in the world.
The Company's business model can be encapsulated across the following

The Company commenced commercial production in 1997
with 10 MVA; it grew its installed capacity by 7.5 MVA in 2000 and 8.26 MVA
in 2004 when the market for manganese alloys was weak, indicating its
commitment to the business. The result is a capital cost per attractively lower than the prevailing greenfieid benchmark.

The Company enjoys a long-term power supply agreement with
DVC but going ahead, is commissioning 95 MW at its 15 MVA Meghalaya
facility. The Company also possesses a manganese ore mine in Orissa,

The Company has successfully completed the construction of manganese alloy
plant and captive power plant at Byrnihat in Meghalaya. The project was
commissioned during 1st week of April, 2009, enhancing Company's
manganese based ferro alloy capacity from 49 MVA to 64 MVA and captive
power capacity to 15 MW.

Company has its own mines in its one of the subsidiary where lease is expired & it is in process of reviving the same .

It has reported net profit of Rs 9.01 crore in the quarter ended December 2009 as against net loss of Rs 47.78 crore during the previous quarter ended December 2008. Sales rose 6.98% to Rs 134.34 crore in the quarter ended December 2009 as against Rs 125.57 crore during the previous quarter ended December 2008.

For the 1st nine months it reported eps of rs 18.5 , as current price realisation is better at around 53000 per tonne, 4rth qtr earning likely to be much better . Thus full year eps likely to be around rs 28/30 levels .

Last year export sales were around rs 380 crs which is around 57 % of total sales .

Equity base of company is low at rs 9.71 crs & promoter holding is around 74.62 %, investors can accumulate this stock on dips below rs 100 for long term target of rs 250 over next one year time .

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